Busn Ch. 1-4

Which of the following marketing concepts emerged during the marketing era?

A consumer focus that permeates successful companies in every department, at every level.

Anya is an administrator at Zenorx Inc., a start-up software company. She is responsible for acquiring capital for the company. In the context of the various factors of production that businesses rely on, which of the following functions is most likely to be a part of Anya's responsibilities?

Acquiring synthetic resources like computers and telephones

Which of the following is a similarity between ethics and social responsibility?

Both play a vital role in building profitable businesses and a vibrant community.

Which of the following statements best describes e-commerce?

Business transactions conducted online, typically via the Internet

_____ refers to the amount of harmful greenhouse gases that a firm emits throughout its operations, both directly and indirectly.

Carbon footprint

Which of the following scenarios illustrates the utilization of human resources as a factor of production?

Carlos hires a content writer to develop content for his online portal that sells fashion accessories.

_____ refers to marketing partnerships between businesses and nonprofit organizations, designed to spike sales for the company and raise money for the nonprofit.

Cause-related marketing

According to the universal ethical standards identified by the nonprofit, nonpartisan Character Counts organization, which of the following illustrates the core value of citizenship?

Contributing to the community and protecting the environment

_____ refers to business contributions to the community through the actions of the business itself rather than donations of money and time.

Corporate responsibility

_____ refers to international trade that involves the barter of products for products rather than for currency.

Countertrade

Before entering a foreign market, which of the following is a key factor that should be considered to evaluate the local economic conditions of the country?

Currency exchange rate

In the context of monitoring ethics and social responsibility in organizations, which of the following statements is true of a social audit?

Determining how to measure the achievement of established goals is the second step in the process of conducting a social audit.

Hetlix Corp., a computer manufacturing firm, had its first manufacturing plant in Detroit. It built another manufacturing plant in Paris, despite the high costs involved. Which of the following strategies for reaching global markets has Hetlix Corp. adopted in this scenario?

Direct investment

In the context of various strategies for reaching global markets, which of the following strategies represents the deepest level of global involvement?

Direct investment

_____ measure the value of one nation's currency relative to the currency of other nations.

Exchange rates

In the context of the history of American business, which of the following statements is true of the industrial revolution?

Factories hired large numbers of semiskilled workers who specialized in a limited number of tasks.

_____ is a specialized type of foreign licensing in which a firm expands by offering businesses in other countries the right to produce and market its products according to specific operating requirements.

Foreign franchising

_____ involves a domestic firm granting a foreign firm the rights to produce and market its product or to use its trademark/patent rights in a defined geographical area.

Foreign licensing

_____ is an international economic and political movement designed to help goods and services flow more conveniently across international boundaries.

Free trade

The _____ is an international trade agreement that has taken bold steps to lower tariffs and promote free trade worldwide.

General Agreement on Tariffs and Trade

Which of following was a result of the bold steps taken by the General Agreement on Tariffs and Trade (GATT) to reduce trade restrictions worldwide?

Goods moved more freely than ever across international boundaries.

_____ refers to developing and promoting environmentally sound products and practices to gain a competitive edge.

Green marketing

Which of the following factors of production encompasses the physical, intellectual, and creative contributions of people working within an economy?

Human resources

_____ means buying products from overseas that have already been produced, rather than contracting with overseas manufacturers to produce special orders.

Importing

Which of the following statements is a difference between foreign licensing and foreign franchising?

In foreign licensing, the licensee does not assume the identity of the licensor, whereas in foreign franchising, the franchisee assumes the identity of the franchisor.

To bring a code of ethics to life, experts advocate a forceful, integrated approach to ethics. In this context, which of the following steps is essential?

Integrating ethics into mandatory staff training

Which of the following statements is true of structural unemployment?

It encompasses people who don't have jobs because the economy no longer needs their skills.

Which of the following statements is true of the debt relief program implemented by the International Monetary Fund (IMF)?

It extended 100 percent debt forgiveness to some poor countries.

Which of the following statements is true of corporate responsibility?

It focuses on contributions made to the community through the efforts of a business.

In the context of responsibility to the community, which of the following statements is true of corporate philanthropy?

It includes all business donations to nonprofit groups.

Which of the following statements best describes the balance of trade?

It is a basic measure of the difference between a nation's exports and imports.

Which of the following statements is true of the economy?

It is essentially a financial and social system.

Which of the following statements best describes a comparative advantage?It is the benefit a country has in a given industry if it can make products at a lower opportunity cost than other countries.

It is the benefit a country has in a given industry if it can make products at a lower opportunity cost than other countries.

Which of the following statements best defines foreign outsourcing?

It means contracting with foreign suppliers to produce products, usually at a fraction of the cost of domestic production.

Which of the following statements best describes the consumer price index (CPI)?

It measures the change in weighted-average price over time in a consumer market basket of goods and services that the average person buys each month.

Which of the following statements is true of the World Trade Organization (WTO)?

It monitors the provisions of the General Agreement on Tariffs and Trade agreements.

Which of the following is a reason for companies to engage in global trade?

It reduces dependence on one economy.

Which of the following statements is true of the Sarbanes-Oxley Act?

It requires that financial officers personally certify the validity of their financial statements.

Which of the following is a function of the International Monetary Fund (IMF)?

It supports stable exchange rates.

Identify a true statement about real gross domestic product (GDP)?

It usually tends to be understated as it does not include any illegal activities.

In the context of the history of American business, which of the following statements is true of the production era?

Jobs became specialized, increasing productivity and lowering costs and prices.

In the context of the history of American business, which of the following statements is true of the entrepreneurship era?

Large-scale entrepreneurs emerged in the second half of the 1800s, building business empires.

In the context of a business environment, which of the following is a key element of the U.S. economic environment?

Legislation that supports enforceable contracts

In the context of factors of production that businesses and nonprofits rely on, which of the following statements is true of natural resources?

Most of them must be extracted, purified, or harnessed.

Cleftell Inc., a coal mining company in the United States, is the only supplier of coal in its area. The company is backed by the government as it offers its supplies at a discounted rate. Government backing makes it easier for the company to deal with legislation, thereby increasing its overall efficiency and productivity. Which of the following market structures is exemplified in the scenario?

Natural monopoly

Tafensoma, a developing country, adopts a law according to which its imports require red-tape-intensive licenses. In this scenario, which of the following types of trade restrictions has the country adopted?

Nontariff barriers

_____ involve buying and selling government securities, which include treasury bonds, notes, and bills.

Open market operations

Which of the following examples of business conduct is legal but unethical?

Paying nonliving wages to workers in developing countries

In the context of ethical choices, which of the following is a strong predictor of ethical leadership?

Personal empathy

_____ is the strategy of deliberately designing products to fail in order to shorten the time between purchases.

Planned obsolescence

Which of the following factors is most likely to be covered by the social environment dimension of a business?

Population size and density

Which of the following steps should an organization follow to bring its code of ethics to life?

Protection should be established for people who report illegal or unethical behavior.

The government of Ledroy Coast, an island country, has imposed restrictions on the number of cars that can be imported in one year from Randavia, a leading car manufacturing country. This has helped the domestic car manufacturers of Ledroy Coast in increasing their market share. Which of the following trade restrictions has the government of Ledroy Coast imposed in this scenario?

Quotas

In the context of carbon footprint, employee commutes, supplier emissions, and product-use emissions are categorized under _____.

Scope 3 emissions

Shayla is performing a social audit of her company. She needs to evaluate how well the firm is meeting its ethics and social responsibility objectives. To do this, she first establishes the goals that the company should strive to meet. Which of the following is most likely to be the subsequent step performed by Shayla?

She would determine how to measure the achievement of the established goals.

_____ is the obligation of a business to contribute to society.

Social responsibility

Which of the following is a difference between the Troubled Assets Relief Program (TARP) and the American Recovery and Reinvestment Act?

TARP was a $700 billion economic bailout plan, whereas the American Recovery and Reinvestment Act was an $825 billion economic stimulus package.

The government of Sporadia learns that low-priced electronic goods from Arcadia are negatively affecting the sales of the domestic companies dealing with the same products. The Sporadian government decides to impose taxes on goods imported from Arcadia. In this scenario, which of the following trade restrictions has the Sporadian government imposed?

Tariffs

Which of the following is the world's largest common market, which is composed of 28 nations and more than half a billion people, and boasts a combined gross domestic product (GDP) of nearly $17 trillion?

The European Union

Which of the following is best known as a lender of last resort to nations in financial trouble?

The International Monetary Fund

_____ is a federal legislation passed in 2002 that sets higher ethical standards for public corporations and accounting firms.

The Sarbanes-Oxley Act

Which of the following is an international cooperative of 188 member countries that aims at reducing poverty in the developing world?

The World Bank

_____ is the rate of interest that the Federal Reserve charges when it loans funds to banks.

The discount rate

Which of the following is a key dimension of the business environment?

The economic environment

According to various research studies, which of the following is an indicator of economic growth?

The growing number of people with cell phones

In the context of the social environment of the United States, which of the following statements is true of diversity?

The growth in ethnic populations offers robust profit potential for firms pursuing them.

Which of the following statements is true of foreign licensing?

The licensee pays a fee to the licensor.

Which of the following consumer rights is referred to when businesses are legally responsible for injuries and damages caused by their products, even if they have no reason to suspect that their products might cause harm?

The right to be safe

Which of the following statements is true of capitalism?

The vast majority of enterprises are privately owned by businesses.

In the context of monetary policy, which of the following statements is true of open market operations?

They involve securities that the government issues to finance its deficit spending.

In the context of the competitive environment, which of the following statements is true of bleeding-edge firms?

They launch products that fail because they are too far ahead of the market.

In the context of business ethics, which of the following situations best describes an ethical dilemma?

When a person is forced to choose among bad options

_____ are employees who report their employer's illegal or unethical behavior to either the authorities or the media.

Whistle-blowers

In the context of factors of production, which of the following is a natural resource?

Wind

In the context of socially responsible companies, codes of conduct work best with _____.

a commitment to finding solutions that work for all parties involved

In the context of the business cycle, _____ is an economic downturn marked by a decrease in the gross domestic product (GDP) for two consecutive quarters.

a recession

A(n) _____ is the benefit a country has in a given industry when it can produce more of a product than other nations using the same amount of resources.

absolute advantage

In the context of the production era, the "hard sell" refers to the:

aggressive persuasion designed to separate consumers from their cash.

In the context of social responsibility, stakeholders refer to:

any groups that have a personal interest in the performance and actions of an organization.

If the Federal Reserve increases the reserve requirement, _____.

banks must hold more funds

In the context of monetary policy, when the Fed reduces the discount rate, banks:

can obtain funds at a lower cost.

The right to fair competition is one of the fundamental rights of:

capitalism

In the context of factors of production that businesses and nonprofits rely on, _____ cannot be considered a natural resource.

cereal crops

A _____ is a formal, written document that defines the moral standards of an organization and gives employees the information they need to make moral decisions across a range of situations.

code of ethics

In the context of international trade restrictions, nontariff barriers tend to be fairly effective because:

complaints about them can be easy to counter.

In a free market system, _____ refers to the quantity of products that consumers are willing to buy at different market prices.

demand

A pure market economy:

does not make sufficient provision for the environment.

In the context of barriers to international trade, variability in the level of infrastructure across nations is a(n) _____.

economic difference

Halposa, a developed country, has had armed conflicts with its neighboring country, Lemponga, for a few years. Hence, the newly elected Halposan government has decided to completely stop exporting consumer durables and electronic goods to Lemponga. In this scenario, the Halposan government wants to impose a(n) _____.

embargo

In the context of carbon footprint, Scope 2 refers to:

emissions that result from purchased electricity, heat, and steam.

During the _____, the government of the United States stepped into the business realm to pass laws to regulate business and protect consumers and workers.

entrepreneurship era

The board of directors of a tile manufacturing company meet to discuss the installment of a new high-end machinery. They all agree that installing the machinery in the workplace could result in a lot of employees being laid off because of the reduced need for manual labor. At the same time, canceling the order placed for the machinery could cause legal issues as the company has already signed a contract with its suppliers. The board of directors thus weigh both the options to see which would cause them less inconvenience. In this scenario, the board of directors face a(n) _____.

ethical dilemma

Access to factors of production due to international trade:

evens out some of the resource imbalances among nations.

In the context of the various strategies for reaching global markets, _____ is producing products domestically and selling them abroad.

exporting

According to the universal ethical standards identified by the nonprofit, nonpartisan Character Counts organization, providing equal opportunity represents the core value of _____.

fairness

The term _____ refers to the sum of all the money that the federal government has borrowed over the years and not yet repaid.

federal debt

Socially responsible firms support consumer choice by:

following the laws that prevent anticompetitive behavior such as monopolies.

A reason why countries eliminate international trade restrictions is to:

increase jobs from foreign companies.

As access to technology skyrockets and barriers to trade continue to fall, _____.

individual economies have become more interdependent

During the __________, as mass production took hold, huge factories replaced skilled artisan workshops.

industrial revolution

Oponium, a laptop manufacturer, offers a variety of gaming laptops at discounted prices. However, the laptops have been designed in such a way that they have performance issues after being used for six months, thereby generating revenue for the company through service charges. In this scenario, Oponium's business conduct is:

legal but unethical.

In the context of fiscal policy, most economists agree that:

lower taxes can leave more money in people's pockets for them to spend or invest.

The starting point for socially responsible employers is to:

meet legal standards.

The Krakozhian fashion market has many brands that sell clothing. However, each brand sells clothing designed for different niches in the market. In this scenario, the market structure prevalent in the Krakozhian fashion market is _____.

monopolistic competition

A balance of payments deficit is the shortfall that occurs when:

more money flows out of a nation than into the nation.

In the context of international trade restrictions, offering less-favorable exchange rates to certain importers is a(n) _____.

nontariff barrier

In the context of mixed economies, pure planned economies are practically nonexistent in today's world because they would:

not create enough value to support their people over the long term.

In the context of ethical individuals, _____ refers to identification with and understanding of another's situation, feelings, and motives.

personal empathy

Aquin, a cell phone manufacturer, has released a new model of smartphones. The smartphones have been designed in such a way that they offer excellent performance in the first few months, but develop technical issues after a certain period. Thus, the customers are bound to repurchase a new phone within a short period. In this scenario, Aquin's strategy is an example of _____.

planned obsolescence

The nation of Radonia recently approved the sale of its national railway service to a company called Dontsky Rail Corporation. The company has no association with the country's government and operates on its own terms. The sale of Radonia's national railway service to Dontsky Rail Corporation is an example of _____.

privatization

A reason why countries create international trade restrictions is to:

protect national security interests.

During the production era, in the early part of the 1900s, major businesses focused on:

refining the production process and creating greater efficiencies.

According to the universal ethical standards identified by the nonprofit, nonpartisan Character Counts organization, treating others how you'd like to be treated, being considerate, and being tolerant of differences represent the core value of _____.

respect

According to the universal ethical standards identified by the nonprofit, nonpartisan Character Counts organization, being self-controlled and self-disciplined and being accountable for your choices represent the core value of _____.

responsibility

Ethics refer to:

sets of beliefs about good and bad.

In the context of the competitive environment of a business, the best measure of value is the:

size gap between product benefits and price

A(n) _____ is a systematic evaluation of how well a firm is meeting its ethics and social responsibility goals.

social audit

Deborah is an executive at Aviroend Inc. Her boss has assigned her the task of reviewing the firm's ethics and social responsibility objectives. To prepare a report, she gathers data from various sources, internal as well as external, and uses software tools to create graphs and charts that capture how socially responsible Aviroend has been since the establishment of its ethics and social responsibility goals. In this scenario, Deborah is performing a(n) _____ of Aviroend.

social audit

Companies that step in with on-site day care programs for workers facing challenges such as raising kids are fulfilling their:

social responsibility.

In the context of planned economies, _____ tend to have high taxes, which are designed to distribute wealth more evenly through the public.

socialist economies

In some western countries, eye contact during face-to-face communication is considered a sign of honesty. On the other hand, eye contact while talking is considered rude in some countries of Africa and Asia. In the context of international trading, this scenario illustrates _____.

sociocultural differences

In the context of the global economic crisis, _____ are defined by experts as loans to borrowers with low credit scores, high debt-to-income ratios, or other signs of a reduced ability to repay the money they borrow.

subprime mortgages

In the context of responsibility to the environment, _____ refers to doing business to meet the needs of the current generation without harming the ability of future generations to meet their needs.

sustainable development

Universal ethical standards are ethical norms:

that apply to all people across a broad spectrum of situations.

In the context of code of ethics, the best-known code is the Johnson & Johnson Credo, which has guided the company profitably through a number of crises. One of the striking elements of the credo is:

that it commits to a fair return for stockholders.

Socially responsible companies make it easy for consumers to express legitimate complaints and develop highly trained customer service people to respond to the complaints. This ensures customers _____.

the right to be heard

According to _____, customers can freely purchase the products that meet their needs.

the right to choose

Balance of payments is a measure of the:

total flow of money into or out of a country.

In the context of international trade restrictions, an embargo is:

total halt in trade with a particular nation.

If the total value of imports is higher than the total value of exports, the country has a(n) _____.

trade deficit

A _____ refers to a group of countries that have reduced or even eliminated tariffs, allowing for the free flow of goods among the member nations.

trading bloc

Businesses that strongly focus on customer satisfaction tend to:

transform their current customers into loyal advocates for themselves.

Gladys, a doctor at Talthron Hospital, notices that one of the trustees of the hospital is falsifying the data of Medicare patients when submitting reports to the government. She reports this misconduct to the media. In this scenario, Gladys can be considered a _____.

whistle-blower

_____ is the overage that occurs when the total value of a nation's exports is higher than the total value of its imports.

A trade surplus

In the context of the history of American business, which of the following statements is true of the relationship era?

Businesses aim to build long-term relationships with customers because satisfied customers can become advocates for a business.

In the context of the history of American business, which of the following statements is true of the marketing era?

Businesses began to develop brands to help customers understand the differences among various products.

_____ is an economic system based on private ownership, economic freedom, and fair competition.

Capitalism

Which of the following statements is true when a person makes a career choice based on what he or she loves doing?

Chances of personal success are boosted.

_____ is an economic and political system that calls for public ownership of virtually all enterprises, under the direction of a strong central government.

Communism

Which of the following was a result of the collapse of financial institutions during the economic crisis in the United States?

Companies began to announce layoffs.

In the context of the history of American business, which of the following is a feature of the relationship era?

Cultivating current customers turn out to be more profitable than constantly seeking new ones.

Which of the following statements is true about the debt ceiling?

Debt ceiling hikes are fairly routine.

_____ are four fundamental resources—natural resources, capital, human resources, and entrepreneurship—that both businesses and nonprofits rely on.

Factors of production

_____ is the total value of all final goods and services produced within a nation's physical boundaries over a given period of time.

Gross domestic product

In the context of monetary policy, which of the following statements is true of the reserve requirement?

It helps protect depositors who may want to withdraw their money without notice.

In the context of measuring economic performance, which of the following statements is true of gross domestic product (GDP)?

It ignores legal goods that are not reported to avoid taxation.

In the context of the technological environment, which of the following statements is true of business technology?

It includes any tools that companies can use to become more efficient and effective.

In the context of the free market system, which of the following statements best describes pure competition?

It is a market structure with many competitors selling virtually identical products.

Which of the following statements is true of countertrading?

It is a powerful tool for gaining customers and products that would not otherwise be available.

In a business, which of the following statements best describes profit?

It is the money that a business earns in sales, minus expenses.

Which of the following statements best describes a budget surplus?

It is the overage that occurs when revenue is higher than expenses over a given period of time.

Which of the following statements best describes a budget deficit?

It is the shortfall that occurs when expenses are higher than revenue over a given period of time.

Conela is a nonprofit organization that renovates abandoned government schools and facilitates their functioning. It is headed by two social activists and is funded by the government. Which of the following statements is true of Conela?

It takes in revenue like any other business.

Which of the following statements is true of the fiscal cliff?

It was a package of draconian across-the-board spending cuts.

Drenexa Pharmaceuticals is based in the United States. In the context of the social environment, which of the following is most likely to be an impact of the rapidly aging population on Drenexa Pharmaceuticals?

It will gain profits as the rapidly aging population will cause the companies that cater to the elderly to boom.

Which of the following is a similarity between millennials and digital natives?

Like millennials, digital natives tend to be extremely tolerant and inclusive.

In the context of factors of production that businesses and nonprofits rely on, which of the following can be classified as capital?

Machine

_____ are business-like establishments that employ people and produce goods and services with the fundamental goal of contributing to the community rather than generating financial gain.

Nonprofits

_____ refers to the chance of giving up the second-best choice when making a decision.

Opportunity cost

Which of the following was an impact of the American Recovery and Reinvestment Act?

People traded good-paying jobs for lower-paying positions.

In the context of the U.S. economic environment, which of the following is a government policy that supports business?

The relatively low federal tax rate

Which of the following was a reason for the collapse of financial institutions during the economic crisis in the United States?

There was a drop in mortgage values.

In the context of monetary policy, which of the following statements is true of commercial banks?

They accept demand deposits and make loans for the public.

In the context of the different degrees of competition, which of the following is a reason why monopolies are considered illegal?

They can harm the economy.

In the context of factors of production, which of the following statements is true of entrepreneurial enterprises?

They can kick-start an economy, creating a tidal wave of opportunity by harnessing other factors of production.

In the context of the various strategies for reaching global markets, which of the following statements is true of imported products?

They don't carry the brand name of the company buying them.

Which of the following statements is true of entrepreneurs?

They produce a ripple effect that enriches everyone around them.

Which of the following statements is true of millennials?

They shaped the Internet.

In the context of the global economic crisis in mid-2000, identify a true statement about subprime loans.

They were given to borrowers with little or no documentation.

In the context of the global economic crisis, which of the following statements is true of subprime mortgage loans?

They were seen by the lenders as low-risk loans.

In the country of Harashimin, the government strongly backs the labor class of the country. It is authoritarian in nature and believes in exploiting wealthy citizens to fulfill its agenda of bringing social and financial equality in the society. In this scenario, the government of Harashimin has most likely adopted the political philosophy called _____.

communism

Jason set up a textile mill in his hometown in 1865. He became a rich businessman by the time his son Earl took over the business in 1895. Soon after Earl started heading the business, the government passed laws to regulate business and protect consumers and workers. Due to this move by the government, the textile mill had to introduce a fixed salary structure for its employees and implement quality checks for the products manufactured. In the context of the history of American business, Jason had set up this textile mill in the _____.

entrepreneurship era

Perggy's Bakes, a bakery in New Orleans that exclusively sells its confectionery products online, makes its products only when it receives an order. The bakery produces the products as per the order and delivers to the customer's homes. It does not produce any excess products. In the given scenario, the price associated with the demand and supply of the products at Perggy's Bakes reflects the _____.

equilibrium price

When making a career choice, experts often advise graduating students to:

find a career they love as it will tend to be more rewarding.

The term _____ refers to government efforts to influence the economy through taxation and spending decisions that are designed to encourage growth, boost employment, and curb inflation.

fiscal policy

In the context of various strategies for reaching global markets, _____ is also referred to as contract manufacturing.

foreign outsourcing

In the context of the global environment, the _____ has lowered prices and increased quality across virtually every product category, as competition becomes truly global.

free-trade movement

The nation of Platinia provides its citizens with free healthcare and education services. The government of Platinia funds these programs through high taxation. In addition to these services, the government also runs utilities, telecommunications, and several other enterprises. The nation of Platinia exemplifies a _____.

socialist economic system

The quality and quantity of goods and services available to a population is referred to as the _____.

standard of living